California's Obamacare Dreams to Become a Nightmare for Patients

Vermont's state government has admitted that single-payer medical plan is a goal in the state. California hasn't officially made that a goal, but with one-third of the state's population on Medicaid, they might be closer than Vermont is in reaching the goal.

But, California doesn't seem willing to pay for the care. Physicians treating Medi-Cal patients are paid $18 to $24 per visit. This is less than one-fifth the average amount physicians bill for a 15-minute office appointment. Low payment rates make it difficult for physicians to accept Medi-Cal patients, and that means many of those covered still lack access to primary care physicians.

California's high enrollment rate is an Obamacare success story. The state chose to expand Medicaid since the federal government pays 100 percent of the costs for newly eligible enrollees in the first few years. To publicize the program, the state completed an advertising campaign and signed up a number of people who had already been eligible but had failed to enroll in previous years. The costs of these patients fall partly to California.

With a large number of enrollees, California either needs to cut costs with low payments to providers or increase revenue. For now, the state is pushing the cost of providing healthcare to providers. Providers who have high overhead expenses will not be able to treat patients at these rates.

Obamacare has provided millions of Californians with free health insurance. Until the state funds treatment, these individuals have limited access to healthcare. This will be true in every state and demonstrates one of the problems with Obamacare — taxes have to go up to pay for promised services or the services won't be available.

Vermont's state government has admitted that single-payer medical plan is a goal in the state. California hasn't officially made that a goal, but with one-third of the state's population on Medicaid, they might be closer than Vermont is in reaching the goal.